On November 27, 2017, the Social Security Administration (SSA) announced that it is adjusting the maximum earnings subject to the Social Security tax for 2018 to $128,400. As we have previously posted, the SSA had announced that it would increase the maximum earnings to $128,700. The SSA made the adjustment after receiving a large number of corrected W-2s received in October 2017 by a national payroll provider.
Our previous post has been updated to reflect the change to the cost-of-living adjustment and is reproduced below.
|
|
2017 |
2018 |
|
Elective Deferral Limit 401(k), 403(b), 457(b) |
$18,000 |
$18,500 |
|
Catch-up Limit (age 50+) |
$6,000 |
$6,000 |
|
Defined Benefit Limit |
$215,000 |
$220,000 |
|
Defined Contribution Limit |
$54,000 |
$55,000 |
|
Dollar Limit – Highly Compensated Employees |
$120,000 |
$120,000 |
|
Officer – Key Employee |
$175,000 |
$175,000 |
|
Annual Compensation Limit |
$270,000 |
$275,000 |
|
SEP Eligibility Compensation Limit |
$600 |
$600 |
|
SIMPLE Deferral Limit |
$12,500 |
$12,500 |
|
SIMPLE Catch-up Limit (age 50+) |
$3,000 |
$3,000 |
|
Social Security Taxable Wage Base |
$127,200 |
$128,400 |
|
ESOP 5 Year Distribution Extension Account Minimum |
$1,080,000 |
$1,105,000 |
|
Additional Amount for 1-Year Extension |
$215,000 |
$220,000 |
|
HSA (Self/Family) Maximum Annual Contribution |
$3,400/$6,750 |
$3,450/$6,900 |
|
HDHP Minimum Deductible Limits |
$1,300/$2,600 |
$1,350/$2,700 |
|
Out-of-pocket Expense Annual Maximum |
$6,550/$13,100 |
$6,650/$13,300 |
|
Medical FSA |
$2,600 |
$2,650 |
